Hall & Woodhouse sells its free trade business to Marston's
Dorset brewer Hall & Woodhouse has sold its direct free trade business to Marston's for an undisclosed sum.
The brewer, whose brands include Tanglefoot and First Gold, said market conditions meant that the free trade side of the group, which numbers more than 300 customers, was no longer viable.
David French, Hall & Woodhouse's head of brands, said: "The direct free trade market has become increasingly competitive, and regional brewers like us have become squeezed between large international brewing companies with economies to offer ever increasing discounts, and micro brewers using their lower cost of beer duty to also sell at low prices.
"Despite our best efforts to grow the free trade business, the decline of the market and the level of profitability meant that we were unable to make this a viable long-term business. This sale will enable us to focus investment on the development of our new brewery and pub estate."
The brewer said its take-home operation had grown "significantly" in the last five years, while free trade activity was "a relatively small part of the business".
As a result of the handover, the Hall & Woodhouse free trade sales and support teams transfer to Marston's under Transfer of Undertakings Protection of Employment (TUPE) legislation. The brewer said this process will be completed by Friday February 1 2008.
In a letter to its customers, Marston's said the acquisition was "great news for all Hall & Woodhouse free trade customers, who will benefit from our commitment to provide outstanding customer service".
The Midland's-based brewer increased its presence in the South of England last year with the acquisitions last year of the Ringwood brewery in Hampshire and the Dorset-headquartered Eldridge Pope pub company.
